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Us 20, Steve Ballmer 8, Hp Moonshot 7, S&p 6, Peter Barnes 6, At&t 5, U.s. 5, America 5, Hp 4, Charlie Gasparino 4, Microsoft 3, Grover Norquist 3, Jackson 3, Bob Greifeld 3, Payne 3, Obama 3, Hearusa 3, Axiron 3, Sandra Smith 3, Liz Claman 3,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    August 23, 2013
    11:00 - 1:01pm EDT  

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stuart: connell, it is yours. connell: bob griese failed finally came out to talk yesterday. mary schapiro back in the spotlight. whether she likes it or not. charlie gasparino will have more on that. the stock, it is responding. ♪ connell: all right, a lot to do today on markets now. we will take what we can get in the markets. today, for now, everythingat
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least seems to be working. nicole: we are pretty happy about that fact. it felt like the eternity breeze. the dow jones industrial is up 20 points. the s&p is also posting gains. microsoft helping the dow jones industrials. if he were to exercise those
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options, he will be worth about $840 million. he ranks 22 in the united states. back to you. connell: we will talk more about that in a few minutes. yesterdays flash griese was the result of problems with data systems. he says the problem has now been addressed, but he cannot guarantee that there will not be any future problems. liz claman joins us now. liz: everything seems calm. what a difference from yesterday. in the wake of the flash freeze, the nasdaq has been seriously attacked. critics say that the nasdaq handled this terribly.
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in fact, former chairman said the nasdaq did a horrible job. they handled this terribly. he is not the only one. there was not enough communication. this morning in my one-on-one interview, i asked him about the critics and he started to push back on harvey pitt. listen. >> i think it is hard for people outside. liz: you are taking a snack that harvey pitt. >> i am just saying for anyone that is not there. it is hard for them to know. hard for them to comment intelligently in terms of what happens.
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we solve the problem within half an hour. certain members made a request in terms of having a longer period to quote. that communication was there. i think to the extent that anyone was not involved, that was as active as you can get. liz: of course there was probably massive mayhem. many felt they were not spoken to. bob said they were having people talking and they had hundreds of phone calls incoming and they handled them. you probably won't hear that that was not the case. many people felt left in the dark. coming up in the next hour, you have to hear his response to my next question.
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what about twitter? it is not public yet. everybody wants that business. you can bet that the new york stock exchange is dying to land that ipo. that is next hour. connell: we look forward to it. good stuff, as always. charlie gasparino is here on more of the flash crash. is his job safe? charlie: management changes are like we in the wake of this. i will point out bob's job, based on everything that i have heard, his job is safe. liz god to an interesting comment. there has been criticism.
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i think he did a great job in handling this in terms of communicating with institutions and major investors. you notice the markets really did not implode. it was all pretty safe. he opened three hours later. people did not know what the price of nasdaq stocks were. his problem was communicating with the average investor. i think duncan has a better handle on this. when you run and exchange, you are running a public company. you are also running a public trust. they look to the exchanges as wall street. if you are not communicating -- let me tell you something, you would not believe the rumors that were flying. i think they needed some
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outreach to the public on why it may have happened. what they were doing to try to fix it. this is all about the average investor. by the way, i believe average investors are not engaged in this market. this gets to the point that they are not in it because they do not know if the market is safe. this is where mary schapiro, she dropped the ball on market structure. we do not have to markets, we have a markets, ten markets, black pools. we do not know the price of a stock. technology is an issue here.
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everything is now run by computers. the markets are computerized. when computers run the show, they break down. they screw up. human beings screw up, but there are others to patch it. connell: all of these things that you brought up, and these are big issues, the fact that yesterday was not a complete mess in terms of market panic, what does that tell us? is that good news? charlie: this is a big deal.
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it has the average investors saying i do not want any parts in stocks. they are not investing in these great companies like apple. what makes america great are these companies that are in these big companies. connell: maybe they should be reassured? >> the average investor should not feel reassured. the markets are broken right now. they need fixing. they need fixing from a structural standpoint. when stuff runs as it is running now, trades are being done on dark pools. we know they had something to do with the listed price.
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we do not know exactly what is going on. the other issue is the technology. is it up to the task of running the markets? it is almost all computers and a few humans now. this is paramount. i think the sec is just as much of a culprit. connell: thank you, charlie. appreciate it. the search for a new ceo at microsoft is another big story today. charles payne will be here to walk us through what it all means for investors. bernanke is not there, but the talk of tapering is. peter barnes has the story. bringing elon musk's hyper loop to life.
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we will have some new developments there. keep it here. stocks hanging in there today. just below 15,000 on the dow. we will be right back. ♪ right now, 7 years of music is being streamed.
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connell: a nice day here in new york. microsoft stock is surging today. charles payne joins us. anytime i see a ceo or big-name person say they are leaving and the stock goes up, you say, oh, my goodness. charles: talk about and! on a long career. everyone is happy. everyone is happy that this guy is out. shareholders, the industry. steve ballmer did not do a good
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job. some of these older companies, i think on top of its his management skill was really embrace it. i do not think he was good at listening to fresh ideas. it was like a lumbering giant. connell: we can sit here and have a pointless conversation, but we could have a more conversation about what is important for that ceo. what do they have to do next? >> start to deploy the cash. make a lot of acquisitions and start to go after this space. when you have that kind of cash
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that they have, you can buy a company for $400 million. look at oracle. they buy a new company every single day. from a $10 million start up to a large rival that is publicly traded. people do not want to work there. i will overpay for your company and you have to stay for four or five years. right now what this has done is it has put a floor under the stock. connell: charles payne is not buying microsoft. charles: i am not buying it. connell: i am looking forward to the special that you are hosting next weekend. 6:00 p.m. eastern. charles: every single day. i know things like the flash freeze yesterday -- there are so much more important things.
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america is not proof. connell: listeners may be liking pandora's music. nicole: they have had increased expenses. they are having to lower their guidance. down 12.5% today on pandora. you do have a lot of the analysts making comments. pandora remains a compelling play on mobile. they still like it. as you noted, six months after,
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continue on listening. we will continue to watch pandora. certainly getting hit hard today. connell: we will talk about obamacare coming up next. particularly, how it affects your savings. the new batman, ben aflac, do you care about it? are you angry about it? anyway, we will talk about that coming up. we will be back talking to grover norquist. ♪ ♪
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♪ >> 22 minutes past the hour. san diego city council will vote today on a proposed agreement with the mayor who has been accused of making unwanted
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sexual advances. reports are that he will resign. terms of the deal have not been revealed. protesting in cairo. the demonstrations have forced egyptian military to be diploid around the city. today's protests are seen on whether morsi can keep up the pressure despite an intense security shut down. officials say the two sides have agreed to allow reunions of families separated by the korean war. the first meetings in three years will take place next month. back to connell. connell: thank you. elon musk, this story we talked about a couple weeks ago, the
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question now, can it be brought to life? it looks pretty cool. tesla motors ceo had the proposal. he proposed it earlier this month. you just get into that tunnel and you are flying at ridiculous speeds. the problem, of course, will be finding the support to get it done. that could be difficult. it is cool to look at. if you sleep ben affleck, do you see batman?
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he is taking on the role. we have some time to adjust to this. the first time batman and superman will share the screen. we all remember his role in daredevil. bernanke turning down the role and also decided to skip the jackson hole summit this summer. there are many speculating when he will start tapering. peter barnes has a very special guest. the president's health care law could cost you more in taxes. grover norquist is coming up.
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keep it here on markets now as we look at the winners on the s&p 500. ♪ you know throughout history, folks have suffered from frequent heartburn. but getting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn.
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>> still to come tipper in by september. it is possible if you listen to the people inside the fed, peter barnes has been talking to, he will talk to was in a moment. the hit on housing, latest numbers are scaring off investors. they were brutal this morning with some of the people who were scared off could be running to
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gold. charlie gasparino was talking about this, up to levels we haven't seen in a couple months and sandra smith will check in from the pits of the cme. for getting this massive halt in trading on nasdaq, investors are seeing big gains on major stock averages this year but implementation of the affordable care act gets closer, 3.8% surtax from that law could sneak up on investor profits. we bring grover norquist in, of americans for tax reform these stories come in and even though i feel like i attention, 3.8%. >> the obama administration and congress when the past obama care tended not to highlight the tax increases that the 4 obama care. and capital gains which is at
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15%, obama moved it up to 20%. and 3.8%, and 24%, back to where it was before reagan came into office. and on capital gains taxes, and they were in dividends. 39.5%. and it was a tremendous assets, through dividends. and to 23.8%. than other investment income in chapter s corporations and other investments like that, 43.4%, 3.8. connell: in some ways. but probably in fairness to all of us, the so-called taxing the rich is what they were talking
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about during the debate. >> you make more than 200,000 you will be hit by this. connell: when they presented it there will be small tax increases to the, quote, rich and this is what it means. what the fact economically? >> anytime you tax you get additional incentive, lots of different things, it will reduce the amount of investment income people have. if you are investing getting capital gains and dividends and the government is taking a larger chunk you can't reinvest money that disappeared. connell: one more question related to politics. ids tax increases you describe, the surcharge and increased tax and dividends, of these words shutting the government down over? should republicans push to not implement these types of things and say we will stand strong and
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if it comes to it, we will go all the way and shut the government down? >> there has been a proposal put forth by senator ted crews and a few other senators suggesting we should defund obamacare. that doesn't deal with the taxes. doesn't stop the taxes. that only stops various parts if it were to pass and the president were to cited he is more likely to give you his liver than sign the defunding of obamacare. i would not plan on that happening and the republicans in the house and senate have been moving away from that as a negotiating point. watch for them to look for delaying the individual mandate the way the president has delayed some of the major companies mandates and also some of the caps and labor unions. watch for a delay of the individual mandate. that might happen. connell: the of the votes, the political leverage to push for
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the and delay those even though they are a minority, house republicans can push that through? >> house republicans could have defunding the whole thing and also could pass the length and may indeed. what matters is democrats in the senate, seven of whom are real and -- running for reelection in states that voted for mitt romney are nervous. devoted 4 obamacare, they live in states where people are very unhappy. because the president has been delaying parts of obamacare, a little difficult for a straight face to say we cannot delay it for you, we could delay for labor unions or big business or insurance companies but not you, it is possible the democrats in the senate who are vulnerable seek to raid their leader and obama and say let's be made. not abolish but delay. connell: that is something we try to separate, the realistic
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from the -- broker norquist, nobody knows more about a tax situation in washington. good to see you. on to this next topic one of our favorites, capering in september, expected to be the major focus with some of the top minds in economics gathering for the annual conference. always a good time and peter barnes has a special guest. take away. peter: we are joined by an economic professor at the school of business at the university of chicago. thanks for joining fox business. everybody is talking about capering and when does the fed start dialing down the $85 billion a month in quantitative easing bond purchases. what do you think? >> the minutes made it really clear that they haven't made a definite decision yet, a few people think they should do if sue and by september, and let's be patient and see where the data are so those people will be
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persuaded by not what happens to the lemon report in september. connell: the august report on september 6th. >> exactly including the revisions for july and june because there is a lot of volatility in these numbers and they tend to be revised 60,000, over a three month or rise in. connell: if numbers come in for the jobs report, what will they do? >> i don't think there is a specific magic number but if it is north of 200,000, a strong report and positive revisions to the previous month, that will probably push a few people on the edge over the edge to do it. if it is less than 150,000 with negative revisions, probably people will step back but the nightmare scenario is it is somewhere in the middle which is the most likely outcome and will cause, more consternation. >> let's assume there's a decent number and they decide to do it, they cut by ten billion,
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something small or something larger? twenty million month? >> it will depend on how the data are looking. my guess is they will probably do on the order of 20 plus or minus five billion, like the step down. one of the reasons they want to do this is to test the waters and see what the implications are for the economy and the markets when they take a step down. connell: markets have not been handling this, haven't pulled the trigger on the policies, just the chatter, the discussion about it by ben bernanke starting in may and coming forward where we see this massive move in interest rates. how big of a problem, management problem is this going to be? >> it shows the power of the open mouth operations. open market operations, just talking about them moves markets dramatically. also happened in japan before the central bank bought a single
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additional japanese government bond to talking about it, dramatic change in the stock market and the exchange rate. so this is a very important issue. relatively new tool and the market and the fed are trying to deal with it. this also is a bit of a challenge that there is a transition. peter: can investors expect more volatility until the market becomes comfortable with this, until capering is large? or what? >> will take a little time on both sides to get the communication strategy right and for the markets to digest and understand the chairman never uses the word caber because that suggests a straight line down. and they will wait and see what consequences are. and learning how the fed will talk about it will take time. peter: the chairman said this would be a measured step, so not
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every month can you count on 10 or $20 billion a month until they stop altogether by the middle of next year when the unemployment rate should be at 7%. >> they want to see how the data at evolves and robust economy. peter: one of the other big issues is the leadership change. are you at janet yellen person or summers? >> the president is in the unusual situation having a lot of people to choose from, not only the main candidates the former shares, former vice chairs of the fed that people are talking about, people with ph.d.s, people who have been in those seats before congress and the international community talking about these issues, battle tested and ready so we are lucky to have such a good
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police. peter: will this transition complicate the policy at the fed, tapering and eventually starting to raise short-term interest? >> it complicates the communications strategy because the chairman has done a job, well developed job trying to set up a communications strategy and that is a new wants to thing that can easily change with another person even if the person agrees with the views, a different person who will speak in a different way and that is a chance for more volatility. peter: thanks for joining us. connell: peter barnes from jackson hole with terrific in sight. bank of america says it will investigate the death of one of its in turns. we were talking about this, terrible story, new developments on that. also markets on markets now, stocks tumbled little, peter was talking about those rates, $2.83
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>> your fox business brief, soccer trading in a narrow range after a technical glitch halted trading on the nasdaq for three hours cammed taking the dow industrials as they are up by 24 points.
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it has been a rough week for retailers. aerospatiale posted a third quarter loss. the company says the highly commercial environment that cut prices and estimated earnings would continue with the back-to-school shopping period and dow jones reports bank of america will investigate the circumstances surrounding the death of summer intern morris earhart who died last week at his london home. banking in turn are well known for putting in long hours, part of their job. bank of america offered support for the family along with the interns and employees who brought them. that is the latest from the fox business network giving you the power to prosper. [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side.
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and join us atr dreams. projectluna.com a quarter million tweeters is beare tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. connell: bad news on the housing market. these are brutal home sales figures, new home sales missed
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big time, 13% down, and your rates 94,000. to geneva, ill. sales director joins us to talk about this. always interesting to go to somebody like you who is out there in the real world and take these economic figures and see if there jiving with what you are noticing. i said these were pretty girl. people say interest rates have gone up and that will hurt housing. is that what you are seeing as well? >> actually what we have seen in the micro environment is this emergence in the marketplace, we have seen a continued steady resurgence in new-home sales. people are out there and they are interested in taking advantage of what are still very good home values and still very good historically interest rates and as they have crept up people have said now is the time to go so we have seen another resurgence. connell: yesterday we had data that supported what you are talking about, i had better buy
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this before the rate is too high but the overall numbers today don't show us that. they show the opposite. people are saying basically to paraphrase millions of people's attitude i should have gone in and now it is too rate, the rates are going up. at some point these higher interest rates hurt you. >> i don't know that it will hurt us for a long time. we have gotten hurt throughout the years and seen permanent numbers globally especially, have just significantly dropped off, household creations of gone through the roof and continued to increase so there is pent-up demand that is in our favor for a long time and we are seeing less steady increases and as rates creep up i think it might cause some people to hesitate for a minute and they continue to go. people need their homes and want to downsize and we are reposition where we haven't built new homes along time in
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the market and as we are starting to increase the new homes capacity and inventory people are gobbling it up. connell: give an anecdotal example, a typical conversation you have with someone on of day-to-day basis. they come in and what is their state of mind? >> consumer confidence has been quite high and we have seen it get better and better. we have customers coming in saying now we sold our current home we are ready to move and recently, we are going to sell our current home so let's start building now because we believe we will sell and they want to tie the new home purchase of a little bit better. connell: thank you for coming on. very timely given the numbers, good perspective. let's get to this nasdaq story we talked so much about. yesterday all the problems in the middle of the day for three hours. all these guys at the stock exchange who cannot wait to get
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on tv and say told you, the humans do a better job than they do. is that what you are going to say? >> part of it i guess you could say. one thing i will say about the humans is it is a redundant system that is always there. it does not turn all 4 have a programming glitch or a widget break, so you're able to represent the customer's order and get some stock on whatever side you are on. stuart: question about what we have seen. it is a quiet in terms of macro, a quiet summer friday, if you don't know what is going on and 15 yesterday, market ended up higher. what does that tell us in terms of a great amount of panic? >> unfortunately we know that this was the side effect of our technological prowess. it could happen at any time. we have seen evidence of that whether an idea of sales or the flash crash a couple years ago
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but the bottom line is one of the things the reason is we are trading at a pretty tight technical range and the nasdaq should be thankful we had a day like this, it happened on august 22nd and volume and finish that and -- connell: one of the human on the stock exchange, thank you, good to talk to you. . news we have for all the gold bugs. prices are climbing, highs we haven't seen in a couple months of we will talk to sandra smith about that but before we do but take a look speaking of finance at the winners today, they're trading and markets are there. [ male announcer ] how do you get your boce? i'm, like, totally not down with change. but i had to change
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connell: bolt at a two month high, the state even argument with brittle housing figures we talked about a few moments ago, all the dead talk peter barnes got into so let's bring sandra smith in from the kids of a cme. phil: looking at gold prices. goal of 25 points, flirting with $1,400 a troy ounce sitting of few months of a couple on the session but looking at the fact that gold is still down 18%, there's a lot of chatter about maybe the yellow metal is finally found a bottom. a lot of analysts have gotten this wrong. barkleys is saying they believe it is in the process of or has actually formed a bottom. they have been ride out a couple calls and short-term they think goals can pull back a little bit. the stock market might struggle a bit if the fed does end bond
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buying program coming up in september this fall, that will beat her interest in stocks and we will see more money into the gold market. we are already seeing that happen in anticipation of that and short-term might see some 4 backs, they are very bullish in the medium and long term and ottawa would say, that is for traders, nothing cures higher prices like higher prices and we have seen that be the case in the stock market. once you get stocks up that high folks look elsewhere, looking at what is she. gold prices of seen a significant sell-off. some of the money starts to move around maybe it will find its way back to gold some time this year. connell: everybody calm after the nasdaq phrase yesterday. >> everyone still chatting about it but traders here acknowledge the fact the we are all in the technological age where stuff is
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going to happen. there used to be panic over these things and now jokes down here about maybe somebody could over a plug the. stuff will happen. it was somewhat calm down here. in the past there would have been an bit more traders on edge but not the case. connell: a good sign in some ways. as always, thank you very much, the gold story is part of that as well as charlie gasparino talked about, people get scared and they buy something. more on our top stories of the day coming up, up big-name c e ls to talk about. steve ballmer ready to say goodbye to microsoft and something you never want to happen when you are a ceo and say you quit, stocks going. bob greifeld after the flash freeze yesterday did an interview with liz claman this morning, she will be coming gone and focusing specifically for the nasdaq going forward how to attack the ipo business given
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dennis: i am dennis kneale. cheryl: i am cheryl casone. after the flash freeze the nasdaq ceo bob greifeld tell liz claman how he thinks he will attract new ipo business namely twitter and talked to homeland security chief tom ridge, the security question was one of the first reactions many had yesterday. he will tell us how save we are. dennis: steve ballmer has had enough for his shoulders have, tom the mic as of board he is out the next 12 months. company surging foreign ceo and investors are buying microsoft on the news which is a little rude. cheryl: this is the only cbs
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programming time when a cable customers have received over the last few weeks. the two sides are at it again. i got the e-mail that discussed this. dennis: 1:16 in the morning and showed up. keep firing missiles. top of the our stocks every 15 minutes, microsoft ceo steve ballmer says he will be retiring in the next 12 months, the search is on and stock is rising, nicole petallides on the floor of the nyse. nicole: the search is on for a new ceo for microsoft. they are looking internally and externally to decide who should lead the company forward. and you see stocks jumping throughout the day on this news and he has been with the company over 30 years running this company to a certain extent that has been criticized heavily, had to take a write-down for windows, he has put in place restructuring of the company and the question as to when he would step down but a lot of people
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looking to smart phones and tablet saying he is not the right guy to lead it and some say an external candidate might be the better choice for a culture change at microsoft and others say there is grave internal consequences. cheryl: stock tells the story, thank you very much. bob greifeld says yesterday's/freeze is the result of the data system that disseminates prizes. the problem has been addressed but cannot guarantee, is that enough to join the confidence of companies looking, twitter, liz claman joins us on the nasdaq. >> co-ceo of the nasdaq and you can bet we asked the same ideal question. there's always acute battle between the new york stock exchange and nasdaq about landing major listings of superhot companies.
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the most recent one the nasdaq has landed like solar city got a lot of attention. x 1 which is of 3d printing co. and a nice performer, those were in nasdaq abscam but the new york stock exchange battles right back and they tried to lure other companies like oracle. this morning in the wake of the flash freeze they are so lucky the volume wasn't heavy when a three hour shutdown happened. can you imagine if it was the day of an idea of of high-profile company and in the middle of a great opening trading simply stopped. i asked bob greifeld in a one on one to give the thirty-second is pitched to a company like twitter who is still deciding when and whose exchange upon which it is if they went public, he defended the nasdaq's reputation. listen to bob. >> it is important to recognize we aspire toward a profession
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with the respective operations of power systems and technology people and other companies recognize that. we will always fall short of that but we have to keep trying and we get better all the time. the number of problems that have declined, but as importantly, we have to make sure we handle problems in the proper way. what we did yesterday nobody wanted to be down and if we had been reckless we would be a lot sooner than that the procedures we have in place worked well, we would say to any technology based company we are not perfect, 99% perfect, and if we do we are going to make sure we maintain a fair and orderly market. >> the first company to understand how the jews would be twitter. they have their own problems. ebay has its own problems. when it is your idea you can bet
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they will be thinking more than twice about this. and the communication, that is where the nasdaq could have improved. they did not effectively communicate, defended that but the ceos of nasdaq, and having received calls, and they have to work on information going outbound. we never got any statement for the first three hours, and that is an area, can you get the word to the retailer and the companies that watch you? cheryl: was difficult for all of us. thank you very much. dennis: the defense of the nasdaq response to the flash freeze is too little too late?
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our next guest says yes, the president of portraying, thanks for being with us. seems likely to big problems, how did this happen. what is the response? >> when you look at the overall response, when i was sitting at home trading, the market twins blank and i didn't get any notification for 30 minutes regarding that and as i went on, nobody received anything until hours after the market closed. the most damning piece in the nasdaq statement is in 30 minutes, they spent two hours squabbling with the rest of the industry how to plug it back in. dennis: in various sound bites, he says, quote, we get better all the time and we are 99.99% perfect, this is their fifth.
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since the flash crash of september of 2010. ninety-nine.99% perfect? >> given past experiences, when you look at facebook, facebook inside traders criticized for lack of communication, surprising not to see that here. the problem is in the industry we allowed this technological arms race to ensue but we don't keep up with the regulatory aspect of that. >> then i see on the front page of the wall street journal bob greifeld trying to push the problem, and is this a broader industry iswide problem or a nasdaq problem? >> that is a great question. it is the broader industry program. the piece of technology that failed yesterday dates back to
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1975, the securities information processor overseas and is ironic we have created a market that is fragmented, technologically advanced but funnel's back to the central core that does read distributed out but the nasdaq is the overseer of that process so it is their responsibility along with the other exchanges tooassure there is enough procedures, policies in place so when we have an outage if technology sales we are able to recoup from that very quickly and that was not the case yesterday. dennis: which do you prefer. would they hold off and say almost nothing and when you finally do say something a couple hours later get as grumpy as possible or should you come out right away and say we have no idea what went wrong, should you instead the updating constantly? i could not believe how long it was since we saw the nasdaq and never put an official of front as the crisis was happening.
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>> like you i was in the same position wondering what was going on and i get a lot of colors so through -- receive some information about that. you have so many retail and investors and people engaged in the marketplace, it is important to get communication out there rather than allow it to rampant speculation which started to occur in the market and the fact of the matter, we don't still know what happened and. dennis: one last quick answer should bob greifeld be fired? >> possibly yes. dennis: we end it there. thanks for being with us today. cheryl: to yesterday's flash freeze investor confidence getting big jolt in a bad way. joining me with their take, gary goldberg, oliver porche and
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james fresh ling, you are concerned the nasdaq is becoming the wild west of trading. >> retail investor confidence is disenfranchised, and electronic trading and the idea that bigger is better, this issue is why they had to shut it down. and the retail guys, had to shut it and the mistakes were clear. no communication and your previous guest talked about that and given a second chance to come out and go unrecognized changes were necessary and could have handled it differently and he comes out and says i won't spend my time speaking to the media or focusing on getting the word out and trying to fix the problem. somebody could have gotten the word out what was going on. cheryl: talking about the media, what about the technical side. for somebody in your position you are sitting at your desk and get your screen japan saying the same thing we're seeing here and
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a frozen stock quote. >> you don't know what to do and not getting any communication. the good news is nobody get seriously hurt in terms of investors. cheryl: how can you equate that? you don't know that at the time. >> with benefit of 24 hours of hindsight here is the issue that holds true whether it is nasdaq or the stock exchange, serving two masters, public companies are worried about the bottom line so the incentive to overspending on infrastructure is nil, their incentive to spend sufficiently on infrastructure is inhibited by the fact that there were about profits and stock price. and those issues come more and more because the pipeline to receive the data and the same with increasing high frequency. cheryl: talking about the
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infrastructure, interesting point, basically this is the nasdaq, software built on software, all you are doing is upgrading your systems. talking about complete infrastructure. >> there are conflicting interests but fact is technology is not going away. automation is not going away. the excuse to say i will do better next time, more money needs to be spent or put in place, and if something goes wrong and it will be ability to communicate that message faster but i believe software on top of software, talk about how dated the software was there is a lack of infrastructure, is unacceptable. >> basic problem. >> a switchover mechanism when something like this happens, stocks that trade on the nasdaq, yesterday's example, continuously placed on other exchanges and lots of exchanges and we like to talk about the
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nasdaq. and i am saying there are options and they ought to build the infrastructure in a way that when something like this happens which will that there is a backup system and investors know that there are continuous prices and portfolio managers can do our business for the betterment of our clients. >> look of the number of mistakes the flash crash, the facebook audio, you wonder why it is a market too and they don't want to play and it seems too gambling and airlines don't go out. >> they bring you up all. and they were drinking yesterday. and steve ballmer. you sold out of your position in microsoft, and a structural change in the company. >> it is about time. if you look that microsoft over the last decade and talk about
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the fact hasn't done much of anything but they missed, in terms of social media, in terms of the tablets, and they overpaid a little bit. my point is there has been little true leadership in the company and one or two steps late and never been forceful enough, a change at the top. >> oliver nailed what we missed but the rumor of the company, and a lot of it divisiveness and that starts at the top so i get the change. cheryl: leave it there now and not moving anywhere in and going down side for a moment. oliver and jim will be back with us and later they will be battling out the final round of the showdown that starts.
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>> three words. break up microsoft. is it the end of an era? steve ballmer or the company announced he is retiring within a year as ceo and there is no clear heir apparent. charles payne joins us to join the crowd. dennis: cheryl: was a simple. but not a cyberattack but how vulnerable our u.s. exchanges. tom ridge will join us. right now, 7 years of music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy.
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do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm.
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give it a few taps, and...it's taken care of. this is pretty eas and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your wallet? cheryl: the dow up eight points. we were talking a few minutes ago steve ballmer at microsoft retiring in the next year and looks like a lot of people don't like that news. microsoft 34-34 up $1.95. the impact on the dow is 15 points but you have stocks in the red. american express is the drag on the dow, only four points, we are 14972.65. 1/4 after let's go to the stock exchange, looking to finish the third week in a row, nicole
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petallides and here we are on off friday talking about a down week. nicole: i never saw the but news in that way the dow's impact, pretty gloomy we do see the name microsoft is helping the dow to keep in positive territory at 15 points. we see that our 14,974. the third straight week of selling. the home sales numbers were the worst we have seen, the biggest mess in three years, home builders under pressure of beating the s&p 500 to the down side. the s&p is managing to squeeze out a gain. overall the fear index is to the downside after the flash freeze, things are pretty calm which is good news, and names on the move and under pressure, but other maintain new highs like tesla and facebook.
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cheryl: thank you very much. dennis: let's make money with charles payne. it is almost routes the way they did this. i rarely see a giant company like this say the ceo is a lame duck for the next 12 months and never mind the need don't have the top guy we know will replace him. charles: hopefully it won't take 12 months to find a replacement although it is a big job, a huge gigantic job and it might be rude but this was so long coming. the stock was around $48 when he took over. it has never been anywhere near that vicinity again. a lot of stocks are crashing, going all the way back. dennis: restarted before the huge 2000 crash. how much of it is his fault and how much in the technology moving past, incumbent -- charles: the technology shouldn't move past with deep pockets and great talent is 90% is his fault and that is why the stock went up 8% when the news,
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the most incredible sigh of relief on a gigantic stock, this is a big name, takes a lot to move microsoft 8%. and it will fade with the realization. cheryl: retiring now, that tells me there's a lot going on behind the scenes. charles: this is something, i got to tell you stuart varney owns stock. cheryl: is he ok? i haven't talked to him. charles: anytime microsoft is up steward is okay but we had this conversation because microsoft is one of the best performers until the most recent earnings report and i always felt most of that was speculation. dennis: assigned to sell. charles: i am surprised when people are surprised. i don't think it is time to buy. i don't see urgency in the private stock. the good news is deep pockets. i say they need to spend the money not on buybacks or dividends but dotted by yourself
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some great talent and make the company exciting again. charles: thanks for being with us. cheryl: ron johnson is available. and the best stock picker in the land heating up, you are not playing this week. charles: watching those. cheryl: jim fresh bling will return to do it out in semifinals of the all-star show down. dennis: al vulnerable u.s. changes to the cyberattack. that did not happen yesterday but talking to tom ridge joining with his take. [ male announcer ] imagine this cute blob is metamucil.
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>> your fox news minute president obama's bust for runs through pennsylvania for the first time in over a year bring his plan for college affordability to scranton. the northern california wildfire near yosemite national park has grown to three times the size of san francisco. hundreds of homes are being evacuated, 500 residents. it is only 2% contained. and city council will vote on a
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proposed agreement, and accused of making unwanted sexual advances on at least 17 women. an agreement emerged after three days of settlement talks and a sexual harassment lawsuit filed by former aide. those are your news headlines. back to dennis now. dennis: gold hitting the two month high, the safe haven after disappointing housing data, and dreaded tapering. and in the pits of the cme with the very much taller phil flynn. >> we want to talk about goals. and you have a vested interest in gold. you got a position. >> and has been moved. and waiting for an excuse, they
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may have got it. >> a lot of calls for gold to hit bottom. barkley's is making the argument they believe is forming a bottom especially with news that the fed might end the bond buying program. do you believe that is the. trigger for gold prices? >> i think it is but the other side is the shutdown of mining and production. when gold went to the 1200 we saw the physical market dried up. cash for gold stores on the street, started to close down and couldn't make a profit. you saw a lot of big mining companies cut capital expenditures and all the sudden the physical side is gone. the investment side was dead. people running away from gold. >> long time near bullish and real quickly, have to leave it there but do you believe this flash freeze that occurred yesterday, is that sending investors into gold today as a safe-haven? >> there's some nervousness. i am blaming the break down on a solar flare. that is all i can come up with.
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cheryl: that is phil flynn. gold on a roll and it could be topping $1,400 a troy ounce and maybe finally formed the bottom. back to you guys. cheryl: the nasdaq, yesterday's blitz was a glitch? hall vulnerable are u.s. exchanges? tom ridge will tell us. a lot to say about this particular topic coming. dennis: you want waffles'? we got waffles. belgian guy who quit his job at ibm to fuel the food grains in manhattan and the company is expanding.
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♪ nicole: i am nicole had not live on the floor of the new york stock exchange. we continue to follow a call by market. let's take a look. we talk about new home sales. take a look at some of these homebuilders that are really blanking on the s&p 500. people began to talk about the fed again and will the fed now take a break?
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dennis: thank you very much. flash, freeze backlash. liz: was there any indication of any kind of computer hacking or system hacking? >> no. dennis: cyber experts want our exchanges. 53% of worldwide exchanges experience a cyber attack in 2012. it is great to have you on the show again. >> great to be back. cheryl: the issue of a cyber
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attack was one of the first things that came to our mind. was it an overreaction? >> i think the attention is focused on the nasdaq and the exchanges. once everyone gets beyond the embarrassment and they address the issue, they will do whatever they can to minimize and reduce the risk of it happening again. when you think about this, they think that technical glitch is around specific pricing information. it is an interdependency. it is not an attack. i do not think that people truly appreciate the reliance on a complex system.
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it gets more complex every year. it is the interdependency that we sometimes do not talk about. you will have glitches. you will have a tax. cheryl: we are now in a world of a global trading platform. does it still, in your opinion, make big u.s. vulnerable? >> well, yes. the complexity of the technology enables the trading platforms and organizations to be connected globally. your point of access can be
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indirect. the strength of the internet is its global nature. it is not only being concerned about your platform, but the platforms you are connected with. there is an interdependency. cheryl: what about the safety of nuclear power grids? >> when these public disclosures
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, as we saw yesterday about nasdaq and other organizations, it should be a constant reminder that tech knowledge he changes. cheryl: millions of dollars. >> you have to build and resilient the. cheryl: you would know that firsthand. governor, thank you very much. >> thank you. dennis: waffles. they are selling like hot cakes.
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the company is expanding. cheryl: get ready for the showdown. ♪ ♪ [ cows moo ] [ sizzling ] more rain... thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. all on thinkorswim. ♪
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ashley: i am ashley webster with your fox business brief. sales of new homes fell to a nine month low last month. meantime, heads may roll out the nasdaq. fox business sr. correspondent reporting that sources close to the nasdaq say management changes are likely. the ceo appears to be safe for now. the nasdaq said in a statement it took just 30 minutes to resolve the issue. pandora says its fiscal 2014 earnings will miss the street's estimate. that is the latest from the fox business network.ng ♪ ion tweeters are tweeting.
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♪ cheryl: it is time for round two. every friday. we track them for a month to see who's pic is the best. four players have been cut from the competition. now, we are in the semi finals. we are back with two new stock picks each. >> apple is a wonderful con -- apple is a wonderful company. the stock has been moving up nicely. it has been beating the s&p 500 since april 1.
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cheryl: if you look at the stock, the performance has been up 14%. >> i think it has gotten beaten up way too much. you have a huge share of buybacks. it is pretty unbelievable. cheryl: your first pick is fielder. it is packaging. >> this is all about the turnaround story. we like the new ceo. he is highly and synthesize to bring shareholder value. it is about cost-cutting. they have some leverage to get rid of, but they are doing it.
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the biggest risk of -- we believe there is more to do with the company. >> one of our top holdings, you know, it is a wonderful company. as spending increases, visa will be a big winner. the stock has sold off on news about these. there is a good entry point. it really is a core portfolio holding for the next few years for us.
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cheryl: ex- co-resources. this is naturalas. >> i felt we had to do something that was a little aggressive. they just make two major acquisitions. the question is why am i liking the company to the buyer? again, we like the play on natural gas. we liked the tailwind. we think natural gas will play. we are also going into hurricane season. that plays very well. september is hurricane season. with that, we hope that there is a big boost in natural gas.
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>> what we talk about these stock picks, you want to put them in an overall portfolio. it makes great fun for guys like jim and i. it is something that investors should be aware of. looking forward to being back and beating him. dennis: one of us will get the tab. cheryl: get your wallet out. both of you. [laughter] cheryl: thank you very much. that was great. you can play along. we will be tracking these for
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one month. scott martin is back in the 20 year. it was stockpicking. i told those guys. let's see who is leading out of those two guys right now. big movers. we have three weeks to go for those pics. gentlemen, thank you very much. >> thank you. dennis: that cease-fire did not last long. cbs lit up again in new york last night, but just for one hour. then i went dark again. i got mine at 1:16 a.m. this
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morning. they regret that cbs put them in that situation. is netflix headed for a fall? look at this stock pick. netflix is a several billion dollars in hollywood payments. the viewing could force it to speed up that right off. there is this. actor ben affleck joins predecessors. is he just too nice a guy? we will see. cheryl: george clooney.
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two words. dennis: he made it his mission to bring belgium's best waffles to the u.s. he is right here outside our studio with the inside scoop. cheryl: that looks awesome. i want that. ♪ on, the only underarm low t treatment. on, axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially the who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk
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cheryl: time for your west coast minute. a bill that will let non-us citizens serve on jury. there is a similar bill on the desk. all part of a movement that was
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banned. las vegas plans to build the world's largest observation wheel right on the las vegas strip. it will be 107 feet taller than the london eye. developers are trying to generate the crowds with this new complex. finally, hawaii to her is him expect it to grow next year. the increase is less than normal on a year to year basis. that is your west coast minute. we are going to head outside our studios. dennis: let talk waffles. they are about to make a major expansion.
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i thought this was the mobile era. thanks for being with us. how has business been in the food truck? why take the risk? >> the laws in new york city are very ambiguous. dennis: what would be the operating costs of having a storefront? >> it is about $3000 a month on a truck. at a store, you are probably looking at $15,000-$18,000.
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dennis: it does seem like waffles are currently hot again. we are doing better waffles than new york has ever had before. they are not only about breakfast anymore. they are also about dessert. dennis: thank you so much for being with us. cheryl: you look good in the glasses. the nasdaq's nightmare. adam and tracy are coming up next. nice knowing you, investors
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choose. steve ballmer says that he will retire. new details on the way the government is spending your money. you have to hear this report to believe it. adam and tracy are next. ♪ my new hearing aids
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adam: i am adam schapiro. lori: microsoft stock jumping. adam: bob garfield changing his response to yesterday's trading halts. adam: did we mention the fed? jackson hall meeting kicking off
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today. ahead, we will have the economist choice for the next fed chairman. the new batman is a cruel joke. time for stocks now as we do every 15 minutes. a lot better day right now than it was 24 hours ago. nicole: yesterday we survived through the flash crash. right now, you can see all of the major averages are holding on.

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